Agriculture is one of the most important sectors of Sri Lanka's economy, accounting for 8.3% of GDP and 26.3% of the country's total employed population in 2023. Thanks to its favorable climate and fertile soils, the republic produces a wide range of agricultural products and is also one of the key exporters of tea, cinnamon, and coconut. At the same time, the level of mechanization of the Sri Lankan agriculture is quite low, and a significant part of agricultural goods (including those for export) are grown here using manual labor, which significantly increases the cost of production and reduces its competitiveness in the global market.
Most of Sri Lanka's crop production is accounted for by cereals, primarily rice, which is one of the staple foods for the local population. In 2023, the gross rice harvest in the republic exceeded 4.5 million tons, accounting for 95.1% of total cereal production. This indicator increased by 33.0% compared to 2022, but still did not reach the record level of 2021 (5.1 million tons). The decline in harvest is associated with the government's introduction in the spring of 2021 of a ban on the import of chemical fertilizers and pesticides in order to stimulate the development of organic agriculture (the decision was canceled in November of the same year due to problems that arose). For the same reason, the production of corn, which is in high demand in the local feed sector, has also declined significantly in recent years: from 472,400 tons in 2021 to 221,200 tons in 2023.
Coconuts are also considered an important crop for Sri Lanka, with the republic among the world leaders in terms of production volume. In 2023, local farmers harvested more than 2 million tons of coconuts, which is the lowest figure in the last five years (due to the ban on chemical fertilizers, production of this product decreased by 11.7% in 2022 and by 6.5% in 2023). Coconuts in the country are mainly used for the production of oil, coconut water, and fiber (coir) — these products are among Sri Lanka's key exports.
The country produces a fairly large amount of vegetables, root crops, and tubers, but in recent years, their gross harvests have also been declining due to a shortage of fertilizers. In 2022–2023, production of these products decreased by 8.9% to 1.3 million tons. The most important tuber in the republic is cassava (356,100 tons in 2023), and the most common vegetable is eggplant
(135,100 tons).
The main export product of Sri Lanka is the world-famous Ceylon tea. The country ranks fourth in the world in terms of tea production and third in terms of tea exports. In 2023, the gross harvest of this crop in the republic increased by 2.4%, exceeding 1.4 million tons.
Sri Lanka has a well-developed fruit and berry production industry. In 2023, local farmers harvested 1.4 million tons of such products, which is 34.7% lower than in 2022. In particular, plantain production declined by 48.8% due to a number of socio-economic and climatic factors, as well as the spread of plant diseases that had a negative impact on the yield of this crop. The production of pumpkins and squash in the country in 2023 amounted to 228,300 tons, mangoes, mangosteens, and guavas — 194,100 tons.
Sugar cane has also historically been one of Sri Lanka's key crops. Its production volume in 2023 amounted to 805,600 tons, which is 8.1% less than in 2022. In recent years, the production of this crop has been characterized by unstable dynamics, which is associated with climate change and the gradual obsolescence of production technologies. Moreover, Sri Lanka is forced to increase imports of sugar cane, as its local production is currently insufficient to meet significant domestic demand.
Local production of raw milk in Sri Lanka covers more than half of its domestic consumption (the northwestern part of the country is considered the center of dairy farming), with a significant part of the demand being met by imported products. Since 2022, the republic has seen a decline in raw milk production due to a shortage of high-quality animal feed caused by a reduction in gross forage crop yields. As a result, raw milk production in the country amounted to 504,200 tons in 2023, of which 81.5% was cow's milk. Against the backdrop of a feed shortage, a decline has also been recorded in Sri Lankan poultry farming: in 2023, local enterprises produced 1.6 billion chicken eggs, which is 13.5% lower than in 2022 and the lowest volume in the last five years.
The meat industry in Sri Lanka has been stagnating in recent years due to declining demand caused by low purchasing power among the population, a shortage of feed, and a difficult epizootic situation. Despite this, domestic meat production currently meets existing demand, which is why the country imports only very limited quantities of this product. Most of the local production is poultry meat (236,100 tons in 2023), while beef production is significantly lower (27,300 tons, of which 70% is beef and 30% is buffalo meat).
One of the most affordable sources of animal protein for Sri Lankans is seafood, which is caught in large quantities in the waters of the Indian Ocean. However, the production of this product in the country is unstable, primarily due to significant fluctuations in fuel prices for fishing vessels, especially during periods of economic crisis. In 2023, local companies produced 407,100 tons of fish and seafood, which is 2.5% more than in the previous year. At the same time, most of the production (84.9%) at the end of the year came from fishing.
In 2023, Sri Lanka's imports of agricultural products amounted to US$2.5 billion, which is 5.2% (or US$123.8 million) more than in 2022, but 12.8% (US$369.4 million) less than the record level of 2021. Despite fairly high tariff barriers, the country's purchases of agricultural goods are gradually recovering as it overcomes the effects of the recent crisis and domestic demand for food increases. In 2024, the republic's imports of agricultural products again reached almost US$2.9 billion.
In 2023, the main agricultural products imported by Sri Lanka were beet and cane sugar (16.7% of total purchases in value terms), wheat (10.9%), milk powder (10.3%), dried lentils (5.8%), and soybean meal and meal (5.2%). In total, the 10 main commodity items accounted for 67.5% of Sri Lanka's total agricultural imports in value terms at the end of the year.
In 2023, the most notable increase was in Sri Lanka's purchases of beet and cane sugar (+74.4% or +$179.7 million), coconut oil (4.5 times or +$91.8 million), and milk powder (+24.1% or +$50.3 million). At the same time, there was a significant reduction in imports of wheat or wheat-rye flour (-32.8% or -$37.2 million).
The largest exporter of agricultural products to Sri Lanka has traditionally been neighboring India, which accounted for 29.1% of all agricultural goods supplied to the country in 2023. New Zealand (9.9%) and Australia (6.4%) also made it into the top three food exporters to the republic at the end of the year. In total, the 10 largest supplier countries accounted for 77.7% of Sri Lanka's total agricultural imports in 2023 in terms of value.
The most notable growth in 2023 was in exports of agricultural products to Sri Lanka from Romania (3.5 times or US$109.5 million), Indonesia (2.1 times or by US$67.8 million), Canada (2.7 times or by US$55.0 million) and New Zealand (by 46.5% or by US$79.0 million). Romania significantly increased its wheat supplies (from US$43.7 million to US$153.7 million), Indonesia exported 16.3 times more coconut oil (from US$5.1 million to US$83.6 million), Canada also increased wheat exports (from US$14.6 million to US$74.4 million), while New Zealand increased dry milk supplies (from US$164.0 million to US$239.6 million). At the same time, in 2023, Sri Lanka's imports from India decreased significantly (-30.5% or -$320.8 million), which supplied 96.0% less rice (from $271.8 million to $10.8 million).
In 2023, Sri Lanka's agricultural exports amounted to US$3.1 billion, up 1.8% from 2022 and down 10.9% from the record high in 2021. The dynamics of this indicator in recent years have been negatively affected by an overall decline in agricultural production in the country, caused primarily by the temporary ban on the use of chemical fertilizers and pesticides introduced by the government in 2021. Against the backdrop of a gradual recovery in output in 2024, exports of the republic's agricultural products exceeded US$3.3 billion.
Tea accounted for the bulk of Sri Lanka's agricultural exports in 2023 (42.0% of shipments in value terms). The country's main export items at the end of the year also included cinnamon and cinnamon tree flowers (6.9%), fruits, nuts, and other edible parts of plants, prepared or preserved in other ways (6.2%). In total, the 10 most sought-after locally produced agricultural commodities on the world market in 2023 accounted for 72.3% of the country's agricultural exports in value terms. Most notably, in 2023, Sri Lanka increased its exports of paprika (+18.9% or +$14.6 million) and tea (+3.8% or +$47.0 million). At the same time, local companies significantly reduced the supply of animal feed, except for dogs and cats (-19.1% or -US$22.1 million), as well as coconuts (-17.1% or -US$18.6 million), frozen fish (-14.4% or -11.4 million US dollars) and coconut oil (-10.9% or -8.2 million US dollars).
The main buyer of agricultural products from Sri Lanka is India, which accounted for 12.0% of the country's total agricultural exports in value terms in 2023. The top three importers also included the United States (6.9%) and the United Arab Emirates (5.5%). Russia ranked fifth in the rating of buyers of agricultural products from Sri Lanka at the end of the year. The 10 largest importing countries accounted for 51.3% of the country's agricultural exports in 2023.
Compared to 2022, the most notable increase in imports of Sri Lankan agricultural products in 2023 was demonstrated by Turkey (2.1 times or $82.7 million) and Mexico (+12.6% or $10.8 million). Turkey imported 2.2 times more tea (from US$70.5 million to US$155.8 million), while Mexico increased its imports of cinnamon and cinnamon tree flowers by 11.4% (from US$84.6 million to US$94.2 million). At the same time, in 2023, Sri Lanka's exports to Iraq (-17.3% or -$27.0 million), the UAE (-9.5% or -$17.7 million), and Japan (-12.4% or -$12.0 million) decreased. Compared to the previous year, Iraq purchased 17.4% less tea from the republic (from US$147.0 million to US$121.5 million). The UAE also reduced its tea purchases by 18.4% (from US$117.8 million to US$96.1 million), while Japan reduced its imports of Sri Lankan crustaceans by 41.3% (from US$18.2 million to US$10.7 million).
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